Ajit Pawar faces budget challenge

Budget 2012-13 might prove to be a tightrope walk for the Democratic Front government in Maharashtra. The Centre has hinted at retaining a moderate plan size in the wake of financial constraints that have affected the economic growth.

The Maharashtra budget will be presented by finance minister Ajit Pawar in the assembly on March 26. The assembly’s budget session will start on March 15.

“Our final proposal is still being worked out. But considering factors, the state plan size could be anywhere near Rs45,000 crore to Rs47,000 crore,” said sources.

Last year, the state government presented a budget of Rs41,500 crore.

Finance minister Ajit Pawar, who has embarked on a mission to accommodate all sectors with special emphasis on social sectors, is unlikely to accommodate oversize demands from all departments. Emphasis will be given to irrigation, primary schools (education), health, rural development and tribal welfare. The departments where public and private partnership can be attained to work out mega projects will see less investment in state budget.

“Notwithstanding the compulsions of the coalition government and revenue generations through various tax proposals, the government wants to tailor its budget cautiously,” said a senior secretary in the finance department.

Last year, the government had promised to generate Rs1,000 crore through various tax proposals, which it has been able to meet. But the bigger concern is how much of the money generated could be actually utilised for development plans. A uniform formula to increase the budget of every department by 10% to 15% is not going to be acceptable to senior cabinet ministers, who have been sulking about getting a raw deal in the last budget.

“We have urged the chief minister to specifically ensure that departments held by Congress ministers are not overlooked while planning the budget,” said a senior cabinet minister of the Congress.

Water resources, rural development, tribal welfare and home are key portfolios held by the NCP which got higher allocations compared to agriculture, industries, and forest portfolios held by Congress ministers.

“During the last budget, the allocation for water resources was Rs6,300 crore, which can be raised to Rs7,500 at the most. Despite the allocation, we cannot meet the challenges of investing in all the incomplete projects languishing across the state,” said an official in ministry of water resources.

The public works department, which has outlined the projects for Rs35,000 crore partly through public and private partnership, is also demanding a hike in the budget.

Last year, the department was left with little funds to begin its new projects. With the state debt being Rs2,81,000 crore and a slowdown in economic growth globally, the state cannot afford to loosen its purse to please all ministers.